Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b)

HQ H058357 April 27, 2009 VES-3-02-OT:RR:BSTC:CCI H058357 LLB CATEGORY: Carriers Mr. Thomas J. Witkowski Operations Manager, Mid-Atlantic Hoegh Autoliners, Inc. 3001 Childs Street, Suite C Baltimore, Maryland 21226 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Mr. Witkowski: This letter is in response to your correspondence of April 23, 2009, in which you inquire about the coastwise transportation of the individual mentioned therein aboard the M/V HOEGH OSLO. Our decision follows. FACTS The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/V HOEGH OSLO (the “vessel”) from Baltimore, Maryland to Jacksonville, Florida. The individual will embark in Baltimore on April 30, 2009 and is being transported aboard the vessel for the purpose of conducting a technical and nautical inspection of the vessel. Specifically, the individual will inspect the vessel's paint and steel; cargo gear; ballast system; mooring winches and lines; steering, navigation, and communication systems; propulsion and main engine; auxiliary engines, and electrical supply. The subject individual will disembark in Jacksonville on May 4, 2009. ISSUE Whether the individual described in the FACTS section above is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b) LAW and ANALYSIS Generally, the coastwise laws prohibit the transportation of passengers or merchandise between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be “coastwise qualified.” The coastwise laws generally apply to points in the territorial sea, which is defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline. See 33 C.F.R. § 2.22(a)(2)(2009). The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 55103 which provides: (a) In General. Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not transport passengers between ports or places in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel- (1) is wholly owned by citizens of the United States for purposes of engaging in coastwise traffic; (2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. (b) Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed. The Customs and Border Protection (“CBP”) Regulations, promulgated under the authority of 46 U.S.C. § 55103, provide: A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business. 19 C.F.R. § 4.50(b). You state that the subject individual will be transported on the vessel for the purpose of technical and nautical inspection, as described above. In this context, and in accordance with previous Headquarters’ rulings, workmen, technicians, or observers transported by vessel between ports of the United States are not classified as “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b), if they are required to be on board to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are on board because of a necessary vessel ownership or business interest during the voyage. HQ 101699 (Nov. 5, 1975); see also HQ 116721 (Sept. 25, 2006) quoting HQ 101699. In the present case, to the extent the individual will be engaged in any shipboard activities while traveling on the foreign vessel between coastwise ports, that is “directly and substantially” related to the operation or navigation itself, as would be the case under the facts herein submitted, such individual would not be considered a passenger. We find that such individual is not a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of such individual is not in violation of 46 U.S.C. § 55103. HOLDING The subject individual is not a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individual is not in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch